Appendix I

THE AMERICAN PROPOSALS OF 18 NOVEMBER

From NABOB 372, 21 November 1945

Following is text of U.S. draft memorandum of understanding on financial matters dated 18 November 1945.

Amount of the line of credit

1. (I) The Government of the United States will extend to the Government of the United Kingdom a line of credit of … billion.

2. (II) This line of credit will be available until December 31, 1951.

Purpose of the credit

1. (I) The purpose of the credit shall be to facilitate purchases by the United Kingdom of goods and services from the United States, to assist the United Kingdom to meet transitional post-war deficits in her current balance of payments, to help the United Kingdom to maintain adequate reserves of gold and dollars and to assist the United Kingdom to assume the obligations of multilateral trade, as defined in this and other agreements.

2. (II) It is understood that any amounts required to discharge obligations of the United Kingdom to third countries outstanding on the date of this contract will be found from resources other than this line of credit.

Amortisation and interest

1. (I) The amount of the credit outstanding on December 31, 1951 shall be repaid in 50 annual instalments, beginning on December 31, 1951, until 50 instalments have been paid, subject to the provisions of (4) below.

2. (II) The rate of interest shall be 2 per cent per annum, computed annually beginning with January 1, 1951, on the amount outstanding each year, and payable in 50 annual instalments, beginning on December 31, 1951, subject to the provisions of (4) below.

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